Why I Frequently Recommend Umbrella Insurance
An umbrella policy provides additional liability protection when the liability limits on your home or auto insurance have been exhausted. While most claims never reach those limits, a serious accident or lawsuit can quickly exceed the liability limits provided by a standard home or auto policy.
Many people assume umbrella insurance is only appropriate for high-net-worth individuals. In reality, it can be a valuable consideration for homeowners, families with teenage drivers, rental property owners, recreational vehicle owners, or anyone looking to better protect their assets, future earnings, and overall financial well-being.
One of the things I review during every umbrella conversation is whether your underlying home and auto policies meet the liability requirements necessary for an umbrella policy to respond as intended. Making sure those policies work together is just as important as selecting the umbrella limit itself.
When Umbrella Insurance May Be Valuable
An umbrella policy can provide protection when a covered liability claim exceeds the limits of your home or auto insurance.
- A serious auto accident results in injuries or property damage that exceed your auto liability limits.
- A guest is seriously injured on your property and pursues a claim beyond the liability coverage provided by your homeowners policy.
- A teenage driver listed on your policy is involved in a major at-fault accident.
- You're held legally responsible for injuries caused by your dog or for an accident that occurs while hosting guests at your home.
An Extra Layer of Protection
Most people hope they'll never need an umbrella policy. Its value comes from knowing you have additional protection in place if a serious liability claim ever exceeds the limits of your home or auto insurance.
Common Umbrella Insurance Questions
Who Should Consider Umbrella Insurance?
Every situation is different, but umbrella insurance is worth considering for homeowners, families, rental property owners, recreational vehicle owners, and anyone looking to strengthen their liability protection. During a coverage review, I'll help determine whether it's appropriate for your situation.
How Much Does Umbrella Insurance Cost?
For many households, an umbrella policy can provide $1 million or more in additional coverage for a relatively modest premium. During a coverage review, I'll help you determine whether umbrella insurance is appropriate for your needs and explain the available coverage options.
How Does an Umbrella Policy Work with My Existing Insurance?
An umbrella policy provides additional coverage above the liability limits of your underlying home and auto insurance. If a covered liability claim exceeds those limits, your umbrella policy can provide additional coverage up to its own policy limit. Because umbrella policies require certain minimum liability limits on your underlying home and auto policies, I'll review your existing coverage to help ensure your policies work together as intended.
What Doesn't Umbrella Insurance Cover?
An umbrella policy is designed to provide additional liability protection. It does not cover damage to your own home, vehicle, or personal property, which are covered by your underlying home and auto insurance policies. Coverage can also vary depending on the policy and insurance company. During a coverage review, I'll explain what an umbrella policy does and does not cover so you have a clear understanding of how it fits into your overall insurance program.
Let's Review Your Liability Protection Together
Together, we'll determine whether an umbrella policy is the right fit for your overall insurance plan and the level of protection you're looking for.